ABC-EFG-CCOGS ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible ofP300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financialstatements+re as follows:АВСEFGSalesCost of goods soldOperating Expenses800,000(535,000)(100,000)35,000600,000(400,000)(100,000)Dividend IncomeNet Income200,000100,000Retained Earnings, beg1,300,000200,000(100,000)1,400,000850,000100,000Net IncomeDividend PaidRetained Earnings, end(50,000)900,000Cash and Receivables400,000300,000298,000902,000Inventory700,000Investment in EFGFixed AssetsAccumulated DepreciationTotals1,000,000(300,000)2,300,000600,000(200,000)1,400,000Labilities600,000300,0001,400,0002,300,000400,000100,000Ordinary ShareAccumulated ProfitTotals900,0001,400,000EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% isleft. Compute for Consolidated Cost of Goods sold.

Following is the answer to the given question

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementre as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 600,000 (535,000) (100,000) 35,000 200,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end Cash and Receivables Inventory Investment in EFG 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 Fixed Assets 600,000 (200,000) 1,400,000 Accumulated Depreciation Totals Labilities 600,000 300,000 1,400,000 2,300,000 400,000 Ordinary Share Accumulated Profit Totals 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementre as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 600,000 (535,000) (100,000) 35,000 200,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end Cash and Receivables Inventory Investment in EFG 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 Fixed Assets 600,000 (200,000) 1,400,000 Accumulated Depreciation Totals Labilities 600,000 300,000 1,400,000 2,300,000 400,000 Ordinary Share Accumulated Profit Totals 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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